The answer is Yes & No. You need a Demat Account number to settle trades electronically. Having a Demat Account allows you to buy shares and store them safely. It can be used to hold a variety of investments like equity shares, exchange traded funds, mutual funds, bonds, and government securities. If you are a intraday trader and not planning to carry forward positions till the next day or take delivery of the equities DMAT account is not Mandatory.